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American Stellar Energy Acquires Drill-Advanced Silver/Gold Property Adjacent to Their San Miguel Project in Mexico
2006-01-03 08:53 ET - News Release
CHICAGO, IL -- (MARKET WIRE) -- 01/03/06
http://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=105081&ProfileId=051205&sourceType=1 American Stellar Energy, Inc. (OTC: AMRS) is pleased to announce that under a "Joint Purchase Agreement" with Paramount Gold Mining Corp, it has acquired four concessions known as the La Blanca property that totals 140 hectares and is located adjacent to American Stellar Energy's San Miguel project in the Sierra Madre Gold-Silver belt, Mexico.
In 1991, War Eagle Mining, a Canadian publicly listed company, drilled 50 RC holes totaling 5,552 meters into the La Blanca silver prospect and outlined a 450 meter long by 200 meter wide zone. War Eagle calculated this zone to contain 6 million tonnes averaging 4.7 ounces of silver with a 2 ounce cutoff and 0.013 ounces gold. War Eagle reported that bench scale metallurgical tests indicated that 90% of the silver and gold could be recovered using floatation.
Commenting on the acquisition, Bill Reed, Paramount's Manger of Exploration, Mexico, stated, "The drilling done to date at La Blanca by War Eagle indicates a resource of 29 million ounces silver at a grade of close to 5 ounces per tonne. We are planning an extensive drill program that I believe will not only validate this resource, but add significantly to it. In addition, La Blanca is adjacent to two concessions that we control at our San Miguel project -- San Jose, where we recently confirmed a zone on surface of 100 meters by 240 meters averaging 225 g/t Ag (7.23 ounces per tonne), which is open in both directions and -- Sangre de Cristo, where I believe the mineralization extends on to from La Blanca -- all of which combined offers the potential for a substantial silver and gold resource."
The mineralized zone at La Blanca is comprised of a number of near vertical brecciated quartz veins up to 1.5 meters in width and running over 10 ounces silver per tonne separated by mineralized stock work quartz veins. The deposit strikes E-W and is open at depth below 100 meters, and possibly to the south. La Blanca is adjacent to other claims controlled by Paramount at its San Miguel project, including the recently discovered San Jose silver zone and the Sangre de Cristo and Swanick concessions.
A core and RC drill program is planned for the first quarter of 2006 to further test the La Blanca, San Jose and Sangre de Cristo areas as well as other targets defined by Paramount's ongoing field mapping and sampling program.
The La Blanca property will be part of the San Miguel joint venture agreement between Paramount Gold and American Stellar Energy, whereby Paramount can earn a 70% interest in La Blanca and American Stellar can earn a 30% interest. Under the terms of this agreement, Paramount has made one payment of US$50,000, and must make 6 further payments totaling US$960,000 over a 10-month period commencing January 31, 2006. In addition, Paramount must make 80% of all future property payments that total US$3,290,000 made up of 12 payments between June 2006 and January 2010.
The La Blanca property is located in SW Chihuahua in the Sierra Madre Occidental gold-silver belt where other gold/silver exploration projects are ongoing. It is adjacent to the Palmarejo Mining District, where Palmarejo Silver and Gold have announced a resource of 3.1 million gold-equivalent ounces, and just South of Gammon Lake Resource's Ocampo gold-silver deposit which was recently announced as a resource of over 10 million gold-equivalent ounces.
About American Stellar Energy, Inc.
American Stellar Energy, Inc. is a precious metals exploration and development company with existing production. It is management's objective to become a significant gold and precious metals producer by increasing our current production at La Currita and developing the San Miguel and La Millionaria projects in Mexico, and by acquiring other advanced-stage projects and/or producing mines in one of the most prolific precious metal districts in the world. For more information, please visit the Company's web site at: www.americanstellarenergy.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
-------------------- The Mouse Posts: 443 | From: Valemount | Registered: Dec 2003
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Old news. This stock is near the top of its run at .092 cents per share. Hasn't been able to break .11 for over a year. Thought it might do it end of December and early January when that PR first came out but it didn't happen. This stock is worth watching, but IMO you don't want to buy right now. Wait for it do deflate a little and give itself some room to run.
The Bigfoot
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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From their last 8-K Other Activities Subsequent to December 31, 2004 - Acquisition of Mining Interests in Chihuahua Mexico The following activities have occurred subsequent to the date of this report which are not related to ongoing oil operations in 2004:
. Acquisition of Amermin S.A. de C.V. subsidiary: In May of 2005 we exercised an option to acquire a 97% working interest in Amermin S.A. de C.V. ("Armermin"), a mining company in Chihuahua, Mexico by making initial cash payments towards the purchase of La Currrita mining concessions and one other mining project.
. La Currita Mining Concessions: Also in May of 2005 we entered into an agreement to purchase 100% of the assets and concession rights in property in Chihuahua, Mexico known as "La Currita". The agreement was entered into through our 97% owned Mexican subsidiary, Armermin. La Currita is a set of 3 mineral concessions including 4 mines and a 150 ton a day flotation mill for processing ore. The total purchase price is $1.2 million of which we have paid $225,000 with 19 monthly installments due of $50,000. We will lose our rights to this property should we fail to make two consecutive payments and forfeit all previous payments. The mill currently processes 80 tons of gold/silver per day with varying consistency
. San Miguel Mining Concessions: Also in May of 2005, we paid $10,000 to enter into an option agreement to purchase 100% of the rights to 12 undeveloped concessions located in Chihuahua, Mexico known as "San Miguel" through our Mexican subsidiary, Amermin. Development of this concession is contingent on the results of a title search. . La Millionaire Mining Concessions: In June 2005, through our subsidiary Amermin, we paid $100,000 to enter into an option on "La Millionaire", a set of four mineral concessions on 2,162 acres in Chihuahua, Mexico. The option agreement allows us to enter a joint venture to earn a 60% interest in La Millionaire once we spend an additional $350,000 within 7 years over the initial $100,000 to put the property into production. Once La Millionaire is in production, we will receive 100% of the profits until our original $450,000 investment has been repaid. After that, we participate at a rate of 60%. If we fail to make the required investment we may lose our interest in La Millionaire and forfeit all payments.
. Paramount Joint Venture: In August 2005, Armermin entered into an option agreement with Paramount Gold Mining Corp. ("Paramount") for the sale of the San Miguel mining concessions. Paramount made an initial payment to us of $50,000 for the option to acquire a 35% interest in the San Miguel concessions. Pending results of a title search, Paramount agreed to pay $250,000 to purchase a 25% interest in the concessions; a further payment of $100,000 will increase Paramount's interest to the 35%. To maintain its interest, Paramount is required to make a yearly payment of $50,000 or an equivalent value of its shares, on the anniversary date of the agreement. Paramount may increase its interest in San Miguel to 55% once certain conditions are met: it spends $1,000,000 on exploration and development, and issues us 700,000 of its restricted shares. Paramount has the further option to increase is interest to 70% by spending an additional $1.5 Million over and above the $1,000,000 spent on exploration and development within 30 months and through the issuance of an additional 200,000 shares. The option to finalize this agreement was extended to November 30, 2005 and Paramount exercised the option subsequent to the year end.
Now if I am reading this right , if PGDP wants to earn in 70% they have spend 2.5 million and issue 900,000 shares. AMRS will have invested $450,000 to get 60% of the take. So 900,000 PGDP shares * 3.74= 3,366,000$ -now I ask you who is the steal here AMRS or PGDP?
-------------------- The Mouse Posts: 443 | From: Valemount | Registered: Dec 2003
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No prob pinoak , Had a good day today up a few ticks on decent volume soon testing new highs. Every penny PGDP goes up make AMRS that much more valuable. If PGDP fully vests into the San Miguel play ( and theyd be foolish not to) AMRS will get over a million PGDP shares. At current prices that is a worth about 4million$!!! Not bad for a little company with a market cap of only 6.5 mil. Silver prices hovering around 9$ right now but the breakout will happen soon , silver inventories very low and the market manipulators in the US are near the end of their rope. If mexico goes ahead with putting silver into their coins again that will put a huge amount of pressure on the dwindling silver supply.
-------------------- The Mouse Posts: 443 | From: Valemount | Registered: Dec 2003
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Boom! AMRS broke the .11 cent resistance level that has been holding it down. Already up to .14 today. No News, don't know why but it could continue to run all day!!!
The Bigfoot
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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I am not currently in this, was last year. Could be big but do your own DD!
The Bigfoot
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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